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Ooredoo Group9M 2016 Results

31 October 2016

9M 2016 | Ooredoo Group Results Call 2|

Ooredoo (parent company Ooredoo Q.S.C.) and the group of companies which it forms part of (“Ooredoo Group”) cautions investors

that certain statements contained in this document state Ooredoo Group management's intentions, hopes, beliefs, expectations, or

predictions of the future and, as such, are forward-looking statements.

Ooredoo Group management wishes to further caution the reader that forward-looking statements are not historical facts and are only

estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties including, but

not limited to:

– Our ability to manage domestic and international growth and maintain a high level of customer service

– Future sales growth

– Market acceptance of our product and service offerings

– Our ability to secure adequate financing or equity capital to fund our operations

– Network expansion

– Performance of our network and equipment

– Our ability to enter into strategic alliances or transactions

– Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our equipment

– Regulatory approval processes

– Changes in technology

– Price competition

– Other market conditions and associated risks

This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to

underwrite, subscribe for or otherwise acquire or dispose of securities in any company within the Ooredoo Group.

The Ooredoo Group undertakes no obligation to update publicly or otherwise any forward-looking statements, whether as a result of

future events, new information, or otherwise.

Disclaimer


1. Results Review

2. Operations Review

3. Additional Information

Contents


Revenue growth in local currency terms across our main markets

Revenue stood at QAR 24 billion: In local currency terms growth in Qatar, Oman, Kuwait, Algeria, Maldives, Indonesia and Myanmar.

Excluding Foreign Exchange translation impact, revenues would have increased by 2% compared to the reported flat revenue.

Group EBITDA stable at QAR 10 billion with an improved EBITDA margin of 42%, indicating an improvement in operational

performance from 9M 2015

Group Net Profit to Ooredoo shareholders increased by 4% to QAR 1.8 billion driven by strong contributions from Qatar, Oman,

Indonesia, Algeria and Maldives.

Group customers increased by 16% YoY to almost 133 million

Growth driven by strong growth in Indonesia, Myanmar, Oman, Iraq, Algeria, Tunisia, Maldives and Palestine.

Group Data revenue share in total revenue reached 39%

Strong data growth from consumer and enterprise customers: data revenue increased to 39% of Group revenue. Revenue from data

contributed QAR 9.4 billion in 9M 2016.

Group B2B revenue increased to 17% of Group Revenue or QAR 4.1 billion for 9M 2016 reflecting Ooredoo’s ongoing investment in

services for business customers.

Group ResultsKey Highlights – 9M 2016

Results

Review

Operations

Review

Additional

InformationOverview


25,477 24,839

24,196 24,266

9M'13 9M'14 9M'15 9M'16

Group ResultsRevenue and EBITDA

Revenue (QARm) EBITDA (QARm) & EBITDA Margin

Note: All Indosat results as reported adhere to IFRS which may in some instances differ from INDOGAAP

-3%-3% 0%

Negative Revenue and EBITDA trend reversed

Higher revenue in Indonesia, Oman and Myanmar, challenging environment in Iraq and Tunisia

Excluding FX impact: Revenue up 2% and EBITDA up 3%

11,225

10,234 10,012 10,156

44%41% 41% 42%

9M'13 9M'14 9M'15 9M'16

-9% -2% +1%

Results

Review

Operations

Review

Additional

InformationOverview


(582)

(128)(485)

200

2,651

2,207 2,2431,632

9M'13 9M'14 9M'15 9M'16

1,7582,079

1,832

2,069

Group ResultsNet Profit and Net Debt

Net Profit Attributable to Ooredoo Shareholders

(QARm)Net Debt (QARm) & Net Debt/EBITDA ratio

Note: Net Debt = Total interest bearing loans and borrowings (Net of project finance entities)+ contingent liabilities (letters of guarantee + letters of credit + finance lease + vendor financing) – cash (net of restricted

cash and below BBB+ rating)

Net Profit improved despite Iraqi security situation

Net Debt improved significantly due to better operational cash flow generation

Net Foreign Exchange

Results

Review

Operations

Review

Additional

InformationOverview

0%-15%

28,805 30,530

27,789 28,297

2.02.3 2.2 2.2

9M'13 9M'14 9M'15 9M'16

+6%

-9% +2%

+4%


Group ResultsFree Cash Flow and Capital Expenditure

Free Cash Flow (QARm) CAPEX (QARm) & CAPEX/Revenue (%)

Note: Free cash flow = Net profit plus depreciation and amortization less Capex; Capex excludes license fee obligations; Net profit adjusted for extraordinary items.

Free Cash Flow improvement supported by lower CAPEX

Investment into network continued to maintain strong competitive position, Q4 traditionally highest Capex period

Results

Review

Operations

Review

Additional

InformationOverview

2,255

1,893 2,138

4,780

9M'13 9M'14 9M'15 9M'16

+13%-16%

+124%

6,165 6,209

5,647

3,642

24% 25%23%

15%

9M'13 9M'14 9M'15 9M'16

+1%

-9%

-36%


Group ResultsTotal Customers

Solid customer growth continued driven by Indonesia, Myanmar, Iraq, Tunisia, Algeria, Palestine, Maldives and Oman

Gained more than 18 million net new customers YoY

Total Customers (000)

89,559 96,005

114,880

132,987

9M'13 9M'14 9M'15 9M'16

+7%

+20%

+16%

Results

Review

Operations

Review

Additional

InformationOverview


Group ResultsTotal Group Debt Breakdown

Total Group Debt (QARm)Total Group Debt Breakdown

(as of September 30, 2016)

Note: Includes Ooredoo International Finance Limited and Ooredoo Tamweel Limited

Temporary increase in Group debt due to prefunding of USD

1 Billion Bond, repaid on 14th October 2016

33,65637,726

40,463 38,462

8,1224,916

2,318 6,884

9M'13 9M'14 9M'15 9M'16

Short Term

Long Term

45,346

42,642

33,771

42,781 41,778

Qatar78%

Indonesia12%

Others10%

Results

Review

Operations

Review

Additional

InformationOverview

Group debt mainly at Corporate level


Group ResultsDebt Profile – Ooredoo Q.S.C. level

Total outstanding debt as at 30 September 2016 at Ooredoo Q.S.C. level USD 9,750 million

Total Loans 3,474 2,650 Total Bonds and Sukuk 7,100

¹ Fully drawn basis

² USD 1bn bond repaid on 14 October 2016

1000

1250

1600

650

1000 1000 1000

750

500 500 500

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2028 2043

Bonds SukukBonds SukukLoans

Loan Type (in USD mn) Amount Usage Rate¹ Maturity

QAR3bn RCF 824 0 QAR Money Market 31 Jan 2017

USD1bn RCF 1,000 1,000 Libor + 100bps 17 May 2019

USD 500mn RCF 500 500 Libor + 100bps 06 May 2020

USD150mn Term Loan 150 150 Libor + 90bps 31 Aug 2020

USD1bn RCF 1,000 1000 Libor + 140bps 07 Jun 2022

Bonds/Sukuk (in USD mn)Issue

Amount

Interest/

Profit RateMaturity Listed in

Fixed Rate Bonds due 2016 ² 1,000 3.375% 14 Oct 2016 LSE

Fixed Rate Bonds due 2019 600 7.875% 10 Jun 2019 LSE

Fixed Rate Bonds due 2021 1,000 4.75% 16 Feb 2021 LSE

Fixed Rate Bonds due 2023 1,000 3.25% 21 Feb 2023 ISE

Fixed Rate Bonds due 2025 750 5.00% 19 Oct 2025 LSE

Fixed Rate Bonds due 2026 500 3.75% 22 Jun 2026 ISE

Fixed Rate Bonds due 2028 500 3.875% 31 Jan 2028 ISE

Fixed Rate Bonds due 2043 500 4.50% 31 Jan 2043 ISE

Sukuk due 2018 1,250 3.039% 03 Dec 2018ISE

Results

Review

Operations

Review

Additional

InformationOverview

Long term debt profile remains well balanced- refinancing risk reduced


Group Results2016 9M Performance Summary

Confident with full year guidance

EBITDA better than forecasted, Capex traditionally highest in Q4

Results

Review

Operations

Review

Additional

InformationOverview

Group Guidance

Items9M 2016

% Change

9M 2016 /

9M 2015

2016 Full Year

Guidance

Revenue (QAR bn) 24.3 0.3% -1% to +2%

EBITDA (QAR bn) 10.2 1.4% -3% to 0%

Capital Expenditure

(QAR bn)3.6 -36% 6.5 bn to 7.5 bn


1. Results Review



Contents


3,0503,051

52% 51%

9M'15 9M'16

Market leadership position maintained – Ooredoo’s mobile

and fixed line networks ranked among the fastest globally

Results approximately in line with previous year, slight growth

in Revenue and EBITDA

3.4 mill customer numbers (-1% yoy, +1% sequentially)

Completed the landing of the new high capacity Asia-Africa-

Europe-1 (AAE-1) subsea cable system to provide more and

faster bandwidth

Ooredoo Qatar CEO, Waleed Al Sayed was named ‘Telecoms

CEO of the Year’ at the 2016 CEO Middle East Award, in

recognition for his strong leadership

Rio Olympics full coverage on Ooredoo TV

Successful iPhone 7 launch event

Reference Infrastructure Access Offer (RIAO) still under

negotiation with the Regulator

Qatar fiber rollout: more than 408K homes passed with more

than 293K homes connected across the country

Group OperationsQatar

QARm

+1%Revenue

EBITDA & Margin

0%

1 US$ = 3.6415 Qatari Riyal (QAR)1

Qatar

5,897 5,982

9M'15 9M'16

Note: (1) Constant pegged currency

Results

Review

Operations

Review

Additional

InformationOverview


9,07810,003

46% 46%

9M'15 9M'16

2,491 2,737

46% 46%

9M'15 9M'16

5,3745,890

9M'15 9M'16

Group OperationsIndonesia

QARm

1 US$ = 13,318 Indonesia Rupiah (IDR)2

+10%

Revenue

+10%

EBITDA & Margin

IDRbn1

Revenue EBITDA & Margin

Note: ((1) As per IFRS; (2) Nine month average rate January – September

Indosat Ooredoo booked double digit local currency YTD

growth both in Revenue and EBITDA for four consecutive

quarters

Strong revenue growth, 10% growth year-on-year driven by

cellular business.

Solid EBITDA growth inline with Revenue growth

Positive bottom line continued due to further improvement in

operational process, revenue growth, stable currency

movement and lower foreign currency denominated debt.

Data revenue growth contributing more than 40% of cellular

revenue.

4G coverage has reached 94 cities in Indonesia and counting.

Indonesia

Results

Review

Operations

Review

Additional

InformationOverview

19,58221,524

9M'15 9M'16

+10%+10%


1,612 1,462

43% 46%

9M'15 9M'16

3,712

3,161

9M'15 9M'16

Group OperationsIraq

QARm

Revenue

EBITDA & Margin

-15%

-9%

Asiacell revenue market leadership maintained thanks to its

strong 3G network and increased data usage.

Revenue and EBITDA declined due to the security situation in

parts of Iraq

Company-wide cost optimization program in place and strict

control helped to improve EBITDA margin.

Customer base increased to 11.2 million as of September 2016

(up by 5%)

Overall security situation has started to show some

improvements in key areas of the country where Asiacell has

started to reactivate some parts of its network (Anbar,

Salahadeen and Mosul)

Iraq

Results

Review

Operations

Review

Additional

InformationOverview


9871,069

54% 54%

9M'15 9M'16

1,834

1,973

9M'15 9M'16

Group OperationsOman

QARm

Revenue

EBITDA & Margin

+8%

+8%

1 US$ = 0.38463 Omani Rial (OMR)1

Note: Note: (1) Constant pegged currency

Ooredoo Oman demonstrating another quarter with growth

across all levels: Revenue, EBITDA and Net Profit

Growth driven by both mobile and fixed data revenues

Customer growth continued in all segments with an increase of

6% YoY to 2.9 million

New brand identity and completely new value-packed tariff for

popular youth-focused “Shababiah” prepaid plan launched

Jorgen Latte (CFO) announced as interim CEO following the

resignation of Greg Young, the previous CEO (private reasons)

Oman

Results

Review

Operations

Review

Additional

InformationOverview


418 434

25% 24%

9M'15 9M'16

1,6861,795

9M'15 9M'16

Group OperationsKuwait

QARm

1 US$ = 0.3017 Kuwait Dinar1

+6%

Revenue

+4%

EBITDA & Margin

KWDm


Note: (1) Nine month average rate January – September

Kuwait

Ooredoo Kuwait Revenue and EBITDA increased by 6% and

4% respectively despite the backdrop of fierce competition and

challenging economic situation

Customer number stood at 2.4 million similar to Sep 2015

Pre paid and WBB (wireless broadband) remains very

competitive

Superior network speed confirmed by Ookla Speed test award

Retail foot print increasing further

Cost saving initiatives in place, results visible in lower Opex

Integration of FASTtelco on track

Results

Review

Operations

Review

Additional

InformationOverview

35 36

25% 24%

9M'15 9M'16

139149

9M'15 9M'16

+4%

+6%


3,103 2,829

9M'15 9M'16

-9%

Group OperationsAlgeria

QARm

1 US$ = 109.1 Algerian Dinar (DZD)1


DZDm



Algeria

Revenue slightly up in Algerian Dinar terms

Ooredoo Algeria maintains revenue market share growth

despite challenging market conditions and fierce price

competition.

Outperforming competition reaching an all-time high value

market share of 38%

Ooredoo Algeria 4G commercial launch post period in October

2016

Results

Review

Operations

Review

Additional

InformationOverview

1,166 1,038

38% 37%

9M'15 9M'16

-11%

31,499 31,085

38% 37%

9M'15 9M'16

-1%

+1%

83,636 84,742

9M'15 9M'16


1,414 1,290

9M'15 9M'16

Group OperationsTunisia

QARm

1 USD = 2.105Tunisian Dinar (TND) 1


TNDm



Tunisia

Ooredoo Tunisia maintained its market leadership position

amid still subdued Tunisian economic environment and a new

Tunisian Dinar currency record low

Results improved sequentially in terms of Revenue, EBITDA

and Net profit.

Customers number reached 7.8 million, an increase of 4%

Strong growth of mobile data thanks to accelerated network

modernization

Cost optimization program enabled savings

Results

Review

Operations

Review

Additional

InformationOverview

626504

44%39%

9M'15 9M'16

-19%

756 746

9M'15 9M'16

334293

44% 39%

9M'15 9M'16

-1%

-12%

-9%


Group OperationsMyanmar

QARm

Revenue

EBITDA & Margin

Myanmar

Ooredoo Myanmar maintained its growth performance and

generated revenue of QAR 1,105 million in 9M 2016

Customer base reached 8.8 million at the end of the period

across the country an increase of 84% over last year

Continue to gain revenue market share in a highly competitive

market

ARPU 4503 Kyat (approximately USD 3.46)

Further progress rolling out 4G network

Network coverage in constant expansion in new areas, now -

offering high quality data and voice services to more than 80%

of the Myanmar population

Considerable cost savings initiatives through extensive co-

sharing and co-locations, and discounts negotiated for new

contracts and contracts renewals with key suppliers

Smooth transition from the former military led government to

new government

Results

Review

Operations

Review

Additional

InformationOverview

-30

-7

9M'15 9M'16

782

1,105

9M'15 9M'16

+41%

+77%


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Q & A


1. Results Review



Contents


Additional InformationGroup Revenue and EBITDA Breakdown

Revenue (QARm) EBITDA (QARm)

9M'13 9M'14 9M'15 9M'16

Qatar 4,860 5,286 5,897 5,982

Indonesia 6,459 5,501 5,374 5,890

Iraq 5,310 4,804 3,712 3,161

Kuwait 1,916 1,615 1,686 1,795

Algeria 2,879 3,507 3,103 2,829

Tunisia 1,890 1,780 1,414 1,290

Oman 1,470 1,636 1,834 1,973

Myanmar - 54 782 1,105

Others 693 656 394 241

9M'13 9M'14 9M'15 9M'16

Qatar 2,368 2,626 3,050 3,051

Indonesia 3,060 2,504 2,491 2,737

Iraq 2,800 2,272 1,612 1,462

Kuwait 526 340 418 434

Algeria 1,200 1,366 1,166 1,038

Tunisia 999 854 626 504

Oman 675 839 987 1,069

Myanmar - (251) (30) (7)

Others (403) (316) (308) (132)

10,012 10,156

24,19625,477 24,83924,266 11,225

10,234

Results

Review

Operations

Review

Additional

InformationOverview


Additional InformationGroup CAPEX and Customers Breakdown

CAPEX Breakdown (%) Customers Breakdown (%)

Qatar17%

Iraq9%

Indonesia21%

Oman10%

Kuwait8%

Algeria11%

Tunisia6%

Myanmar16%

Others2%

Qatar3%

Iraq8%

Indonesia, 61%

Oman2%

Kuwait2%

Algeria10%

Myanmar7%

Tunisia6%

Others1%

Results

Review

Operations

Review

Additional

InformationOverview

9M 2016 CAPEX = QAR 3,642 m 9M 2016 Total Customers = 133 m


Group Operations BreakdownBlended ARPU

Results

Review

Strategy

Review

Operations

Review

Additional

InformationOverview

127.6124.3

118.5 114.3119.8

126.7

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Qatar (QAR) Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR)

6.86.7

7.3 7.0 6.9 6.6

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Indonesia (QAR) Kuwait (QAR) Tunisia (QAR) Algeria (QAR) Myanmar (QAR)

19.019.4

14.715.6 15.7 15.6

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

24.525.1

22.9 22.7 21.923.3

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

23.623.6

17.1 16.7 15.413.7

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Indonesia (IDR) Algeria (DZD)Tunisia (TND)Kuwait (KWD)

35.438.4 36.6

32.9 31.4 32.2

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

64.9 66.2 67.0 67.0 67.0 66.8

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

47.9 49.8 50.3 51.2 51.9 52.5

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

32.734.5

29.2 29.5 30.6 30.2

Q2'1

5

Q3'1

5

Q4'1

5

Q1'1

6

Q2'1

6

Q3'1

6

67.4 68.3 71.7 69.9 67.8 65.5

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

24,682 26,557 27,644

26,146 25,287 23,966

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

5.6 5.7 6.0 5.8 5.6 5.4

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

10.2 10.5

8.1 8.7 8.9

9.4

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

661.2710.2

673.7 671.8 659.3703.3

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16

Myanmar (KYT)

5767.7

4982.34503.5

Q2

'15

Q3

'15

Q4

'15

Q1

'16

Q2

'16

Q3

'16


Additional InformationStatutory Corporate Tax Rates

Algeria 26% 4 years

Indonesia 25% 5 years

Iraq 15% 5 years

Kuwait 15% 3 yearsGCC companies (including NMTC)are exempted and are subjected to 4.5% Zakat, KFAS &

national Labour Support Tax on consolidated profits

Maldives 15% 5 years

Myanmar 25% 3 years

Oman 12% 5 years

Palestine 20% 5 years

Qatar 10% 3 years Qatari/GCC owned companies and companies listed on Qatar Exchange are exempt

Singapore 17% Indefinitely

Tunisia 35% 5 years1) 25% is the standard tax rate; 2) 35% tax rate applies to oil companies, banks, financial

institutions including insurance companies and telecommunication companies

NotesStatutory

Tax Rate

Losses C/Fwd

Allowed

Results

Review

Operations

Review

Additional

InformationOverview

Thank You

Website: ooredoo.com

Email: [email protected]

Twitter: @OoredooIR

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